Copper falls on dollar gains, China industrial weakness

Copper fell on Wednesday as a firmer dollar weighed on prices, while concerns over sluggish industrial activity in China added to the cautious tone.

The three-month contract on the LME edged down 0.21% to $9,816 per metric ton by 0706 GMT, while the most-traded copper contract on the Shanghai Futures Exchange eased 0.34% to 79,190 yuan ($11,071.03) a ton.

The dollar index rose 0.2% to 98.47, following U.S. President Donald Trump's move to fire Federal Reserve Governor Lisa Cook, which renewed investor worries about the central bank's independence.

A stronger U.S. dollar makes greenback-priced metals more expensive for holders of other currencies, which can dampen demand and weigh on prices.

Meanwhile, China's industrial profits declined for a third straight month in July, as businesses grappled with weak demand and ongoing factory-gate deflation.

Still, Chinese fabricators have indicated a recent uptick in export orders. Export-driven demand was strong in the first half of the year, as manufacturers boosted output ahead of U.S. tariffs, but supplies dried up as the levies came into effect. Any stabilisation in demand amid elevated trade tensions bodes well for the sector in the short term, said analysts from ANZ.

Elsewhere, Indonesian sovereign wealth fund Danantara plans to access $8.3 billion in investment funds in 2025 to develop a nickel processing hub in partnership with Chinese battery and mineral recycler GEM.

Indonesia is the world's largest nickel producer.

Among other London metals, aluminium edged 0.3% lower to $2,630 a ton, nickel lost 0.16% to $15,260, lead lost 0.05% to $1,987, and zinc dipped 0.59% to $2,797, while tin climbed 0.42% to $34,340. .

SHFE aluminium increased 0.39% to 20,810 yuan, nickel gained 1.17% to 121,760 yuan, tin climbed 0.73% to 271,320 yuan, and zinc rose 0.02% to 22,310 yuan, while lead dipped 0.15% to 16,890 yuan.